COMPANY COMMENT: Eastplats board has a lot of debris to shovel
Eastplats is making tentative forays into unlocking value in its assets and PLG is that company that now offers shareholders an opportunity to participate in assets that service two key components of society
It’s difficult to get a sense of where Eastern Platinum (Eastplats) and its cash holdings of nearly $24m are headed based on recent releases, but it is clear the board has a lot of detritus to clear before investors can be sure of what is going on. The latest statement from Eastplats, which is based in Canada and has mothballed mines and projects in SA, shows a raft of complex legal and legacy issues the new board is dealing with while trying to realise value from underlying assets. Eastplats suspended funding its Kennedy’s Vale and Mareesburg projects in 2012 and stopped its Crocodile River Mine in 2013. It has since had its board overthrown, and the new directors are investigating "certain transactions entered into by former management". One of those transactions is the failed Hebei Zhongheng Tianda Platinum purchase of the Crocodile River mine, which has gone to court in British Columbia. Another legal action has been brought in SA by Alpha Global Capital seeking to wind up the c...
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